Why is cryptocurrency declining?

Ground Report | New Delhi: Why is cryptocurrency declining; Domestic exchanges of several cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, have plummeted following reports of a ban on cryptocurrencies in India on Wednesday.

The central government is planning to introduce a bill in the next winter session of the parliament in which most of the private corrupt currencies will be banned. Prices of several major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, fell by about 15% to 20% on Wednesday against the Indian rupee.

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According to the draft Corrupt Currency and Regulation of Official Digital Currency Bill 2021, mining, holding, selling, issuing, transferring, or using cryptocurrency is punishable by a fine of up to 10 years imprisonment or both. ۔

However, according to the draft bill presented yesterday (Tuesday), the use of processor technology under any corrupt currency for the experiment, research or education will be allowed. (Why is cryptocurrency declining)

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In contrast, the government is trying to develop a framework for the country's official digital currency, which the country's central bank will issue through this bill.

The draft bill acknowledges that there are many benefits, including better records of virtual tokens and more efficient payments abroad, but also the potential use of cryptocurrency for money laundering, risk to consumers, and financial stability of the country. Concerns have also been raised about its potential dangers.

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There are currently no rules or regulations for the use of cryptocurrencies in India. With the new bill, the government is considering banning all private cryptocurrencies, but will also provide exemptions for some currencies that have not been specified.

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